BRAZIL: Ibovespa Rises On Privatizations, Auctions And TLP Approval

The Brazilian government announcement on new privatizations, concessions and auctions under the Investment Partnerships Program (PPI), in addition to the approval of the Long-Term Rate (TLP) in a Congress’ joint committee, made the Ibovespa high (+0.66%), closing at 70,477.63 points. That was the highest closing level of Ibovespa, the benchmark stock index in Brazil, since January 19, 2011 (70,058 points).

In addition to announcing its intention to privatize Eletrobras, the Mint and Lotteries were included on the privatization list today. The Brazilian government is also expected to grant 14 airports, 15 port terminals, highways and to auction oil exploration areas and energy distributors.

Earlier, the market was already optimistic for the approval of the provisional measure that deals with the Long Term Rate (TLP). The measure is expected to help in reducing the country’s structural interest rate and the functioning of Brazil’s National Bank for Economic and Social Development (BNDES).

Among the highlights of today were the shares of miners and steelmakers, such as Vale (VALE +2.13%), Gerdau Metal?rgica (GOAU4 +7.42%) and Usiminas (USIM5 +3.85%).

Meanwhile, the locally traded U.S. dollar closed down 1.1%, at R$ 3.1440 in the sale, influenced by TLP’s approval.

The material has been provided by InstaForex Company – www.instaforex.com

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